The Oil and Gas Development Company (OGDC) net profit soared 79% to Rs43.16 billion in the third quarter ended March 31, 2022 mainly due to the rupee depreciation and surge in energy prices from the fields to the downstream industries.
The oil and gas exploration firm booked a profit of Rs24.12 billion in the same quarter of the previous year, the company said in a notice sent to Pakistan Stock Exchange (PSX) on Thursday.
Accordingly, the company’s earnings per share jumped to Rs10.04 in the quarter under review as compared to Rs5.61 in the same quarter of the previous year.
The board of directors of the company has recommended an interim cash dividend of Re1 per share for the quarter ended March 31, 2022. This is in addition to interim dividends already paid at Rs3.75 per share during the year.
The new entitlement would be paid to those shareholders whose name would appear in the register on May 12, 2022.
The OGDC’s share price decreased 0.65% (or Rs0.55) and closed at Rs84.56 with 1.98 million shares turnover at the PSX.
Cumulatively, in the first nine months (Jul-Mar) of the current fiscal year, the exploration firm booked a net profit of Rs112.04 billion, which was 69% higher as compared to Rs66.35 billion recorded in the corresponding period of the previous year.
The net sales of the company increased 36% to Rs89.10 billion in the third quarter as compared to Rs65.4 billion in the same quarter of the previous year.
The surge in sale was seen on the back of “66% hike in oil prices and 11% rupee depreciation against the US dollar”, Arif Habib Limited (AHL) analyst Muhammad Iqbal Jawaid said in a post-result commentary.
However, the oil and gas production dropped by 7% and 9%, respectively, in the third quarter, he said.
The exploration cost settled at Rs2.8 billion in the quarter under review, dropping by 50% year-on-year.
Other income swelled by around five-times to Rs8.35 billion in the quarter against Rs1.62 billion in the same quarter of the previous year “on account of exchange gains on foreign currency along with higher interest income on cash and cash equivalents”, he said.
Published in The Express Tribune, April 29th, 2022.
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